What the French government plans for EDF-GDF

15th June 2004, Comments 0 comments

PARIS, June 15 (AFP) - The French parliament on Tuesday opened debate on a controversial government plan that calls for major changes to the country's electricity and gas monopolies, EDF and GDF, notably by opening them up to private investment.

PARIS, June 15 (AFP) - The French parliament on Tuesday opened debate on a controversial government plan that calls for major changes to the country's electricity and gas monopolies, EDF and GDF, notably by opening them up to private investment.

The following is a summary of the plan's components, which on Tuesday sparked a major protest in Paris by electricity and gas workers.

- Transformation of Electricite de France and Gaz de France into corporations and an opening of their capital, a move that EDF chairman Francois Roussely says could bring the group an extra EUR 10 billion - EUR 15 billion (USD 12 billion - USD 18 billion).

- The state would remain the majority shareholder in both companies, with a 70 percent stake.

- Employees could hold up to 15 percent of the capital and have a representative on the executive board. Foreign and domestic customers, as well as communities, could also hold stakes in EDF and GDF.

- Company workers would retain their current job status and retirement benefits scheme. The two companies would also continue to be considered public service enterprises.

- EDF would be able to sell gas to its clients while GDF could market electricity.
 
- But a joint enterprise known as EDF-Gaz de France Distribution would be responsible for maintaining distribution networks, meter reading and accounts management.

EDF last year had 167,309 employees and had operations elsewhere in Europe, as well as South America, Africa and Asia. Sales came to EUR 49.9 billion.

The group provides energy and services to 41.6 million people worldwide, including 35.6 million in Europe. In 2003 it was responsible for 22 percent of the electricity produced in the European Union.

GDF last year employed 37,853 workers, had sales of EUR 14.4 billion and provided services to 14 million clients in Europe, South America and India.

© AFP

Subject: French news

 

0 Comments To This Article